Denver, CO-based Westport Resources Corp. said late last week that the company spudded eight natural gas exploration wells and 59 development wells during the third quarter. The company also reported that it has hedged approximately 60% and 40% of its estimated oil and gas production, respectively, from its proved developed producing reserves for 2002. Westport said its oil and gas hedges are predominantly collars with average floor prices of $22.26 per barrel and $3.10 per MMBtu respectively.

During the second half of 2001 in the company’s northern division, Westport approved participation for an average 35% working interest in the drilling of 80 coalbed methane wells in the Powder River Basin of northeast Wyoming targeting both Wyodak and Big George coals. Westport said approximately one-half have been drilled through the end of September.

The company also said it has participated with a 21% working interest in the Wrangler Unit exploratory test well, which recently reached a total depth at 17,300 feet. The well is located on the west flank of the Washakie Basin in southwest Wyoming. Casing has been run through the Almond formation, and completion and testing will commence in the fourth quarter.

Westport also completed an Echo Springs well in the Wamsutter area of southwest Wyoming, encountering 29 feet of net pay in the Almond formations and 27 feet of net pay in the Lower Mesaverde formations. Westport owns a 100% working interest in the well and anticipates first sales in October 2001. Westport said it is currently drilling an additional well in the Standard Draw area in which it owns a 100% working interest.

The company also updated its progress in the Washakie Basin of southwest Wyoming. Westport drilled and completed a well in the Triton unit encountering 80 feet of net pay in the Lewis formation, with additional shallower potential. Holding a 62% working interest, Westport anticipates first sales in October 2001.

Westport’s southern division has also remained active. The company has maintained its Georgetown drilling program in Washington and Grimes Counties, TX through the third quarter of 2001. Three wells have been brought on production during the quarter and currently produce at a combined gross rate of 19 MMcf/d. The company said it is also still working in the Elm Grove field in North Louisiana, where it has an approximate 37% working interest in the field. During the third quarter, Westport drilled eight wells, bringing the total to 30 wells for the year. Gross production increased from 16 MMcf/d in early 2000 to approximately 50 MMcf/d in Sept. 2001.

In the Gulf of Mexico, Westport reported that the West Cameron Block 198, A-5 well has discovered an estimated 27 net feet of pay over an extensive fault block and is being completed. First production is expected in fourth quarter of 2001. Westport also said the High Island Block 84 #1 well was drilled to 13,900 feet and encountered over 100 net feet of pay. The well was completed and tested at a rate of 8.8 MMcfe/d at 8600 psi of flowing tubing pressure. Westport owns a 52% working interest in both blocks.

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